iSuppli: new iPod nano costs around $45 to manufacture

Analytics company iSuppli has completed their analysis of Apple’s sixth-generation iPod nano. The company concludes that the small, square, touch-screen media player costs the Cupertino company $45.10 to manufacture; $43.73 in materials and $1.37 in manufacturing costs. The most expensive components on the device are the 8GB of NAND Flash memory ($14.40), the display ($11.50), and the Samsung processor ($4.95). Apple sells 8GB model of the device for $149. Not a bad profit margin, eh?

Secondly, it’s true that’s a good markup, but you also have to take into account R&D that went into the product that they have to recoup, marketing (Cake has to get PAID for “Short Skirt – Long Jacket”), and someone to keep all the Apple “Geniuses” employed. I’d say that realistically that the total cost is about double what it costs to manufacture. But still, you’re looking at about $60 per unit above costs? That’s still not bad at all, considering the amount they will sell.

Madbird

R&D….thats been paid for a million fold. The meat and potatoes aspect of the research is over…now with little tweaks here and there – the profit margin is through the roof. Not even mentioning that Apple produces its products at a factory in Shenzhen China where 300,000 exploited chinese laborers live and work for peanuts. Apple is as fascist as they come!

Lunchbox

OK, then they have to pay for someone to carry around Steve Jobs’s giant balls, and pay hush money to the families of people whose souls that the demons who work there devour. And we can’t forget, as previously mentioned, “Short Skirt – Long Jacket”

Either way, the point I’m trying to make is that it’s not as cut and dry as manufacturing cost per unit vs. MSRP.

And honestly, they’re a corporation. Why should they be faulted for making a profit? If you had a product that you could charge a 300% markup for, wouldn’t you? Granted, the China workforce situation is awful, but until our governments start charging these companies ridiculous tariffs to import from China, why would they stop? Be honest with yourselves.

Jake One

Yeah, but isn’t there an offset as well? Its not like the Nano is the ONLY thing Apple sells. They have other more expensive, much more marked up products that help cover all the costs you speak of.

Products with lifespans this long are supposed to go down in price… doesn’t anyone remember the RIAA get their asses sued for CD sales going up over 10 years rather than down?

NEW tech costs money and high mark up is understandable… taking the same old tech you’ve been pumping out the last several years, re-arranging it and coming out with new iterations is not a legit reason to over charge for it.

But not Apple here… as long as stupid people demand and are willing to pay for it, so be it. Good on Apple.

Jake One

Sorry, meant to say ‘not hating on Apple here’. It is what it is.

personally, $150 for an 8GB-anything seems like a rip off to me.

watbetch

Another horrible iPod update. Please leave well enough alone. We should have been at least offered an iPod Nano Classic.

JB

Why die in a fire? Thats harsh. I was just announcing I was first. Teehee.

JB

And Fifth!!!!!!!!!!!!!!!

droiiiiid

These are iPads for honey i shrunk the kids.

Norm

Just wait for the new DROIDpod Nano. Expect it in 6 months excluively from Verizon with a great two year data plan. Its going to be inifinitely better as it will be open source and simply not Apple.

JR

Apple sells it for $149 at the Apple Store and online… but they have to sell it less to Target, Walmart, Best Buy et al so those stores can make a little profit. Better if you compared to the wholesale price.

ab

That’s insane for how much it costs to buy one.

PiperCrab

We already know Apple’s products are overpriced. This just confirms it.

http://c3dude.wordpress.com c3dude

why is this so surprising? People have been overpaying for desktops and laptops they could build themselves at half the cost for years. Same with any other device or any other produced thing in general. Don’t forget that they also have to recoup wages, injuries, defective products, lemon products, etc.

Lunchbox

I’d love to see someone try to build an iPod Nano instead of buying one in the store! haha it would definitely be cheaper, but probably not-so-“nano”

Jake One

I’d love for you to see the factories over in Asia with droves of workers pumping out the parts to this stuff for much less pay than whatever you do.

Lunchbox

Yes, because I’m being derogatory toward the deplorable working conditions that Chinese workers have to face. In any way.

Where do you get off lecturing me? Douche.

Scott

@Jake One

You know, if you’re not happy with how the workers are treated in a country that is very over populated, you could do one of the following:

1) Not buy anything made in China
2) Complain to your local congressmen
3) Complain to your government
4) Provide facts to show to friends about these factories

If you have done all of that, then good for you! Give yourself a pat on the back!

Kiddo

You forgot to say one thing:
Please don’t criticize apple or God Jobs in any way.

Adam

I like my widescreen-video 5th gen Nano WAY better than the “new” ipon Nano. They got rid of the ability to play video on the new one. I use my video player all the time. I guess they would rather have you spend more and get an Ipod touch. This 6th generation Nano is just too small to be “touch” too. I like the click wheel better. I just feel like my 5th gen nano is a better value at the same price.

ljp

I think iSuppli should be used as a very rough guide instead of taken as gospel as many do. They have no idea what kind of deals Apple or any manufacturer has with part suppliers.

Jjjason

This is such a stupid argument. The market dictates the value. When enuff people fail to see the value at present prices, the company will lower them.

Who cares what it costs the company to manufacture the product?

That’s like arguing that soft drinks at movie Theaters only cost the company 10 cents per drink so the company is ‘evil’ for pricing them at $2.50 for a small cup of soda.

No one is holding a gun to the head of the customer to purchase a soft drink at a massive markup. It’s called Capitalism. Steve Jobs and everyone at Apple isn’t Santa Clause, making this stuff for free and putting it under your tree if you’ve been a good boy all year.

Grow up.

Lunchbox

THANK YOU

bearleton

Best revenge is to own some of the stock.

Kiddo

You are 100% correct it’s just sad that much of the value of apple product is not innate value but marketing me-too-ism.

$150 for something with a touchscreen that’s too small and only has 8g of storage.

It was fine the way it was but now they screwed it up.

JB

15th!!!!!!!!!!!!!!!!!!!!!

JB

Doh!!!!!!!! MonkeyCheese!!!!!!!

Kiddo

More evidence apple rips off it’s fanboy customers.

Thanks God Jobs!

Jjjason

Don’t understand who or what makes you sad regarding this story. The customers who freely choose to purchase Apple products? Steve Jobs? Because his products make tons of money?

What’s the beef? I don’t like the new Nano and don’t need a new one so I’ll pass. I can’t afford an iPad so I’ll wait for the prices to come down and see what the competition comes out with in the next year.

People can do whatever the hell they want to do with their money. Does that make you sad? So what if some people buy Apple products because of hype? How many crappy movies have you seen because the commercial looked good? That’s life.

D.bags

so how much do nike’s cost to make again? and how much are they retail? ya i think i just made this whole article moot.

SJ

Please leave us alone.

JKR

why is everyone making this about the Chinese workforce? First of all, if apple did not go to china, their products would be just THAT more expensive, and they wouldnt be at all competitive. secondly, apple’s chinese workers have better conditions than their competitors, NBC did a thing on it like 2 years ago, hulu it or sumthin…

Jeffrey

The problem is not that Apple sells their crap for such high prices. The problem is that people buy them for these prices.